9 FINANCEOUTLOOKINDIAOCTOBER, 2026INDIA'S HOME BUYING AGE FALLS AS GEN Z ENTERS HOUSING MARKET EARLIERUPI MDR GST: NPCI SAYS SMALL MERCHANTS WON'T FACE EXTRA BURDENIRDAI PLANS MAJOR INSURANCE DISTRIBUTION REFORMS TO PROTECT CUSTOMERSRBI INVIT & REIT VALUATION RULES: WHAT CHANGES FOR FINANCIAL ENTITIES?IRDAI Insurance Distribution Reforms could reshape how insurance policies are sold and serviced, with the regulator proposing changes aimed at improving transparency, competition, efficiency and customer protection. The (Insurance Regulatory and Development Authority of India) IRDAI released a consultation paper titled "Recalibrating Economics of Insurance Distribution", covering distribution structures, expenses, commissions, market conduct, transparency and digital infrastructure.One of the key proposals is to simplify the existing insurance distribution architecture. IRDAI said RBI has revised InvIT and REIT Valuation Rules for All-India Financial Institutions (AIFIs), with the central bank introducing separate valuation treatment for quoted and unquoted units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). The revised framework aims to bring greater consistency and clarity to investment valuation and financial reporting.The Reserve Bank of India has amended the valuation framework governing InvIT and REIT units held by AIFIs. The revised provisions separately address quoted and unquoted units, providing a clearer methodology for financial institutions when determining the value of these investments. India's Home Buying Age is falling, with younger borrowers entering the housing market earlier than previous generations. Data from Kotak Mahindra Bank shows that the number of its home-loan borrowers aged 25-30 years increased 86% from 1,234 in FY24 to 2,290 in FY26. Gen Z's share of Kotak's individual home-loan borrowers also increased from 6% to 9% during the period.The shift reflects a larger shift in the housing market in India, where home ownership is becoming a more early stage financial goal for the younger working population. Kotak's numbers, however, are for its own home-loan portfolio and shouldn't be considered the average for the home-buying age in India. UPI MDR GST will not create an additional burden for small merchants, according to the National Payments Corporation of India (NPCI), which said most UPI transactions will remain outside the Merchant Discount Rate (MDR) framework.NPCI also said that MDR shall only apply to transactions where person-to-merchant (P2M) trans-actions amount to more than Rs 2,000. Any transaction under Rs 20,000 will still have a zero MDR charge and hence no impact GST on MDR. framework, expanding investment avenues for clients while easing several compliance requirements for portfolio managers.At its board meeting on Thurs-day, Sebi approved the Sebi (Port-folio Managers) Regulations, 2026, replacing the existing 2020 regu-lations. The new PMS framework allows portfolio managers to invest in initial public offerings (IPOs), pri-mary debt issuances and a broader range of overseas securities. It also introduces a dedicated route for professionally managed portfolios of mutual fund investments. a simpler structure could make it easier for customers to understand who is selling or servicing their insurance policy.
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